Bank Nifty opened today’s session with a gap-up at 51,765 versus Friday’s close of 51,674. But then, the index saw a decline and is currently hovering around 51,300, down 0.7 per cent.

The advance/decline ratio stands at 3/9, supporting the bearish bias. Punjab National Bank, up 0.6 per cent, is the top gainer whereas Canara Bank, down 2.4 per cent, is the top loser.

Nifty PSU Bank has lost 1.3 per cent by the end of the first hour of today’s trade. Whereas Nifty Private Bank is down nearly 0.9 per cent. So, broadly, the public sector banks seem to face higher downward pressure.

Bank Nifty futures

Bank Nifty futures (November contract) opened today’s session at 51,950 versus Friday’s close of 51,928. It has now dropped to 51,550, down 0.7 per cent.

Since the contract has slipped below the support at 51,600, the chances for further fall are high. While the nearest support is at 51,200, Bank Nifty futures might drop below this and touch 50,800.

On the other hand, if the contract recovers, it is likely to face resistance at 51,800. Subsequent resistance is at 52,000. Only a clear breakout of 52,000 can turn the tide in favour of the bulls.

Trading strategy

Short Bank Nifty futures now at 51,550. Target and stop-loss can be 50,900 and 51,900. As a risk management measure, when the contract slips below 51,200, revise the stop-loss to 51,500.

Supports: 51,200 and 50,800

Resistance: 51,800 and 52,000

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